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You have probably heard about payday loans, and as such, you may be concerned about the nature of these loans. They tend to receive a bad press, but this is largely unwarranted. Rather, their bad reputation is due to a lack of understanding on the management of these loans by people who take out the loans. Most of the confusion stems from looking at the APR. The average for most quick payday loans is between 2000% and 3000% APR. This looks scary; however, it is a misrepresentation. Sure, it is astronomical when seen as an annual percentage rate, but these loans are intended for short term use—from a few days to several weeks. The cost of the loans is set as a rate per amount borrowed. For example, if you borrow £100 for a month, it costs £30. These are flat rates, rather than percentages over time. This problem alone accounts for much of the bad press. However, the FSA insist that payday lenders indicate the APR. The flat rate, rather than the percentage rate, is there because the loans are short term. To pay interest over the course of a year would make the costs expensive, but these are short term, and so are cheaper. However, there is, as with any loan, some caution to be had. The most important thing that you can do when you take out a loan—of any type, regardless of the nature of the loan or lender—is to ensure that you can meet the repayment schedule. As long as you can meet the demands, you will be fine. The flat rate is the way in which lenders stay in business, a standard APR (e.g. 20%), would be too small on a monthly loan for the lenders to remain in business. Compared to the longer, high street, bank loans, there are much less requirements for borrowers. There are a few, those, and these include: You must be at least 18 years old. You must be employed and receiving a regular salary. You must have an active bank account, and this account must be the same account into which your wages are paid. You must pass the credit scoring test—although this is much lower than with the high street lenders. If you have been refused credit with other lenders, then you may still be eligible for quick payday loans. Applying for a loan is simple and straightforward and takes a matter of minutes. You will receive a decision almost instantly, and then, the loan will be deposited into your account no later than three working days. You can even fast track the loan, for a small fee, and have the money in your account within a single working day. If you would like further information and advice, or you are interested in a loan and wish to apply now, then you can do so at http://www.handycash.co.uk/
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